THIS IS DAN NORCINI'S FORMULA FOR HOW THE MARKETS MOVE DUE TO 'RISK AVERSION'

Write this down somewhere and memorize it as a simple formula:
Stocks down, dollar up...sell everything commodity...including gold
Stocks up, dollar down...buy everything commodity...including gold
Study how the Euro/Yen cross works in the Forex market

From Dan's comments on April 6, 2009 at JSMINESET.COM:

"Computer algorithms are what they are and have become a fact of market life. Right now, those algorithms are keying on the level of the Dollar and the level of the S&P.

When the S&P moves lower, the Dollar moves higher
and the computers then have orders flowing into the pits to sell commodities as “risk aversion” increases.
When risk aversion drops off, as stocks move higher, the dollar then moves lower
and commodity markets experience broad based buying.

That old friend of ours, the Euro-Yen cross, continues to be a good harbinger of which way investor sentiment is leaning.

Today it was lower
which is another way of saying the investors were trying to avoid risk.
In our brave new world,
that means the “risky” asset known as gold (?) is a definite sell."